Gold above $1,100.

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Gold Hits 2-Mo. High, Above $1,100, On Safe-Haven And Chart-Based Buying 
Thursday January 07, 2016 08:24

(Kitco News) - Gold prices are higher and hit a two-month high Thursday, on more safe-haven demand amid geopolitical tensions and plunging world stock markets. Importantly, the near-term technical posture for gold has improved markedly this week, which is prompting short covering in the futures market and fresh chart-based buying. February Comex gold was last up $11.40 at $1,103.20 an ounce. March Comex silver was last up $0.119  at $14.095 an ounce.

World stock markets are under solid selling pressure again Thursday as trader and investor anxiety in the world market place remains elevated on this first trading week of the year. China’s stock market traded for only a half-hour Thursday and then circuit-breakers kicked in to halt trading for the rest of the session. It was the second time this week that trading in Chinese stocks was halted by circuit-breakers. Asian investors were also spooked when Chinese monetary authorities devalued the yuan again. The heavy selling in China quickly spread throughout Asia, including Japanese, Hong Kong and Australian stock markets. European stock markets also saw strong selling pressure Thursday.

U.S. stock indexes are also sharply lower Thursday morning and hit three-month lows overnight. Nymex crude oil futures dropped to a 12-year low below $32.00 a barrel Thursday, to add to the fear and uncertainty in the marketplace. Brent crude oil futures also dropped to a 12-year low. The raw commodity sector has been hit hard this week by fears of slowing world economic growth sapping demand for many raw commodities. Weak economic data from China was reported earlier this week. China is the world’s largest raw commodity importer.

Other very worrisome matters for the markets this week include North Korea on Wednesday saying it had tested a hydrogen bomb. However, western intelligence sources said the detected blast was not big enough to be an H-Bomb. Still, the world was reminded that North Korea’s rogue regime possesses nuclear weapons despite its isolation. The tensions in the Middle East remain high this week as Iran and Saudi Arabia are in a stare-down after Saudi Arabia executed a cleric who was popular with Iranians.

Other perceived safe-haven assets are also performing well this week, including U.S. Treasuries and the U.S. dollar.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job cuts report, and monthly chain store sales. With all the other markets-moving events this week, traders and investors are less-focused on Friday’s U.S. jobs report, which is arguably the most important U.S. economic report of the month. Friday’s non-farm payrolls component of the Labor Department’s employment report is expected to show a 210,000 rise in December. Still, the jobs data is likely to have a significant impact on many markets.